May 2024 / United Arab Emirates

The Federal Tax Authority (FTA) has published the tax guide on free zone persons. The guide provides clarification on the following aspects:

• the conditions required to be met for a free zone person to be a qualifying free zone person and to benefit from the 0% Corporate tax rate; and
• the activities that are considered qualifying activities and excluded activities for a qualifying free zone person.

The guide covers the following areas:

• the free zone corporate tax rules;
• the requirements to be considered as a qualifying free zone person;
• the rules for calculating the corporate tax for a free zone person;
• the rules for maintaining adequate substance;
• the rules related to foreign permanent establishment or domestic permanent establishment;
• the rules related to immovable property;
• the rules related to intellectual property;
• the qualifying activities;
• the excluded activities; and
• the compliance rules.

The FTA published the guide to Free Zones for Persons on 17 May 2024.

Source: IBFD Tax Research Platform News

The Federal Tax Authority (FTA) has published a tax guide on investment funds and investment managers.

The guide provides clarification on the following aspects:

• the definitions of qualifying investment fund and investment manager;
• the conditions for a qualifying investment fund to be exempt from corporate tax;
• the conditions for a real estate investment trust (REIT) for being exempt from corporate tax;
• the tax implications for an investor investing in a qualifying investment fund;
• the conditions for a foreign person to benefit from the investment manager exemption as specified under article 15 of the Corporate Tax Law; and
• the tax compliance requirements for investment funds and investment managers.

The FTA published the Tax Guide for Investment Funds and Investment Managers on 6 May 2024.

Source: IBFD Tax Research Platform News